New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-11-28
THE BIG GAS TRUST YIELDED
GRAVE CHARGES MADE BY THE HOFFMAN
ESTATE.
SUIT BEGUN AND THE COMPLAINT FILED-A COM
PROMISE MADE THROUGH TIE TRUST PAY
ING AN EXoRBITANT PRICE FOR
THE PLAINTIFFS STOCK.

Nevertheless the methods themselves have never been
iuliy ventilated though the pecuarItics Of this great
combination ought to be Of universal interest Tho
Gas Trust' not only exists under that title but tho
prime movers In f. identified with number Of
other Concerns Of similar objects throughout the
country. The same not only own all the gas com
pancs in the city of Chicago, but have in their posses
sion valuable street franchises in New York, Brook
Bn, Philadelphia, Iittsburg and Chicago to the know
edge of the public, with a number Of regions I'm the
United states to hear from What the ultimate object
OF the syndicate IS only be surmIscd from obscrv
alton Of rs tendencies. The syndicate appears to
have at IFS command million, OF dollars Of capital and
means Of raising moro.
The actions of the Chicago Gas Trust OF Interest
to New Workers. at present account Of suit brought
against II by the executors Of the estate Of Emannc
Hoffman. formerly wholesale dealer i'm leaf tobacco
al No. lI0 Water st. The estate owned a number OF
shares Of the stock Of Of tho gas companies swa
lowed by the Trust and It for the purpose of pro-
tccng the Interest, Of the estate against ih" machin
ations Of the Gas Trust people that Henry Rosrn"ad
and Max Oppcnhclmcr, executors brought the SUIT lhe
members Of the syndicate found themselves confronted
By dangerous opponent, and were obliged to admit
that they had no defence against the charges brought
They therefore rcsotcd to means Of defence when thcy
had adopted before They bought off the plan'l's'
by paving something like SiOO share for stock worth
ga at par
TIIT COMPLAINT WHICH DID THE WORK.
A reporter for TmE THBrSE has succeeded in OBJ
tanning the original draft Of the bill Of complaint hcd
by the Hoffman estate. which compelled the Gas trust
10 Weld so much Of It's wealth to avoid the Inevitable
results Of the litigation. The list OF defendants III
cludcs Cha,c, r Ycrkcs. Peter A. b Widcner' william
L. ElMns william ". Gibbs, and + {. benedict all
members Of the primary syndicate besides many Others
The substance Of the bill Is a, follows:
The estate OF Emanuel Hoffman originally owned
500 shares but at the time of the suit had SOFA all pu
4OC shares of the stock Of the Chicago aN-Llgh ana
coke Company. Tho latter was incorporated under
the laws Of the state Of Illinois in l7i9' being en-.
powered at the time to issue capital stock not to eNcce
100000 subsequently by various acts the i'm' VI
raual stock was increased to five million dollars Inc
company las accepted these various acts ana mas
issued It's capital stock to the amount oil <4o74-oV'
Since Its organization the company has ais" ""Ir"
real and personal estate, consisting OF us plant lo' h
manufacturing and distribution of gas OF the Van' oi
,, - ooo 600 A trial balance taken from the books
~ IN. company shows for May, l07' net prom vi
sot o,4 49, Monthly statements Of assets ana Ia
buulcs taken from the books Of the company on NO
vcrn,cr 4 show the following figures for four montiS'
including september, 1857 ,,,,,.,..
Norus ,, iot1, To- "a 20 Is Vn5 IS
Jsr i--i ............ G"L6sS 81 81 SSa,fs9oI3 - -
Asn,e't.[ AuIast l.-7 nm. ItlssOoooo l2oss9j9 "
The asset, In the september report are d'>'iip'"
A. permanent assets invested consisting oi ''" 49,
t,,c vorlS. muucl- mains. meters anu S''
.,q..oooo. rcaligablc assets, consisting Of coal
h,,. ~,. cl,, # ,I.caso cIAlm suburban gas stock
- -,, ,ccounf, receivable and duc from other com
-. sos nOO The assets represented by '"'
,, , r,,i estate tlcicfcic. srdt"i Is jumped rom
a.. o.,o 600 io q, 81 d.uhlc that amount, a'cofd
.,r. ,o the comuany'> statement
rur sr,rrMF>T SAID 10 ~ FALSE
Tho complainant, char2' that this s'a'"c"' was
,, e., that # Included - $50 900 Of per cent mort
csI- Of "A
ina ,,c hand, Of the company also. that IA" iten In
leasing tnc september statement s'd'oooo was
i,tdeA 10 the Iooh keeper Of tho company on slip
- rs,cr by 1hcobad Forsfall. OF the defendants
and rrcslden Of the C', Light and 'ohe. Company
without any furthcr cNIiat"l'n.
The total net profit, of the company nntl October l.
1877 to- the niuc months, were :.@3,7f2. tn" com
many was therefore, pr> pcr,u, and could have con-
,lurd to declare u, soul annual dividends A. It had
heretofore done Instead tho last dividend Wa de-
carcd ca January !, l--7, and no dividend has been
drcartd since also. uuu August -. i-7 the property
and franchise, OF the company were free rom mortgage
liens Judgment, or other incunb anc"S and would be
50 sim had not been for the wrongful a'is of the
defendants.
ON March II. 1--7. a mcci'ng Of the stockholders
Of the company va held and ;. a. Kent, e.. X. Cum
mings j. y. Coh.s. ". c. Coudy, 1Lcobald Forst all,
C. r. Yerkcs, ". ". GIBBS, ". L.
Elkins Thoma. Doan, J. Charles Moore and
T. A. b. Wldcncr were elected directors. and Ihcoblld
Forstal was elected president. G. T. lcrhcs was
elected nst vice president " t. ElhnS second vice
president George \ Youlllc secretary and treasurer
and T. l. Gentry. assistant secretary and treasurer
OF these : A. Kent. e. Il. Cummings, C. T. lcrhrs,
T. A. b. Wldcncr William l. Elkn'. W. W. Gibbs
John H. Cohrs L. J. Matthews and others of the de
PENDANTS within few months past purchased ana So
cured the control Of large majority Of the capital
stock Of the Chicago Gas Light and Coke Company,
as the paintiifs assert for the purpose Of controlling
the same for unlawful and fraudulent purposes. M
a meeting on August - the directors mchil"nrh'
under the false prctcrce Of exercising the borrowing
power conferred upon the company In l-o'' "mch
power was given only for the purpose Of constructing
carving on and completing IT, works. resolved a. they
had urryoii,lv long contemplated to issue the boudS
of the company 10 the amount Of SlOO0OOo ana
directed the president and the secretary To execute
mort gage I'm the name Of the company, conveying III
trust TO the Fidelity Insurance Trust ana SAFE lF'po'"
Company of Philadelphia Of Defendants the property
rights and franchises, easements, privileges ana I'M
munltlcs Of the Chicago Gas Light and Coke tom
pany together with all the tolls ncoric, r'venuc'
rents issues and profits thcrcfrom The bonds are
Of tho ~ 900 denomination, payable III l""'' ""
81 $50 900 Of them issued AT once. Inc IT,
nlalndcr was made isSuabc ~ required Tor 'he !"
qusltlon of new property ana Tor 'ostIuo''""' "''
prOvcmcnts, extensions aud equipments
A DIRECT CHARGE OF FRAUD.
This statement, namely, that the money was olr-
rowcd for the acquisition of new property an" i''
corist ructiun, improvements, extension ana equip
mcntp the plaintiffs stood ready to prove was
frauduIsnty Inserted In the deed Of trust As already
stated INF, WAS the only purpose for which the com
pany was authorized to borrow money on lis property
Instead Of This the compainants charge ha tho Tc"
intent and purpose of the directors IN ISSUING 'n'
bonds and mortgaglng the property OF the COMPANY
was not for any purpose expressed In the act oil roo
nor for any Of tho purposes rcccd IN inc rcso'"o"
| Itnar of Directors
nu,rs rcc.d ln tho deed Of trust On Tic 'UlIarS,
Il i, charged that 1t the Intent oi the urc.os
IanI stnr khnlers who the same ptitlcs actne
~ The Hoard OF and Stoc kholdcIs at th9
same timeJ TO mortgage the property ana issue anu
scu honds IN the extent Of 81 $4,000, and TO diS-
trlbute the proceeds Of the sac among me stoch
holders az the company namely, the directors thCiu
IL. "h ,Lc Tiicity Insurance Trust and safe DO
posit Company representing those unhnH~n TO pam
iins who had co-oporated with the directors anu
,,ncl L"iIcr. I'm mrha,ing and securing a majority
OF the capital stock also FOR the purpose OF fuin
bursting them for the moneys hey hao % ' and